iPad 2 Video Hands-on: The Competition Should Worry

It’s not really the thinness of the iPad 2 that makes it so impressive. Or the speed boost from the dual-core A5 processor. Or the slick magnetic Smart Cases. It’s how all of these ingredients work together with the software to deliver a better experience. And a better iPad (starting again at an aggressive $499) is bad news for other tablet makers, who are struggling to catch up to Apple’s 65,000 app lead–nevermind the new industrial design. Here’s our quick take.

Design: We spent some hands-on time with the iPad 2 and immediately noticed the weight difference between the iPad (1.5 pounds) and iPad 2 (1.3 pounds). The iPad 2 is also super thin (.34 inches) while still feeling sturdy; it’s a third thinner than the first iPad. And yet Apple crammed a whole of goodies into the aluminum unibody chassis, including dual cameras–VGA on the front, 720p on the back–and a louder speaker. It was tough to hear this speaker in the demo room, but it’s definitely better.

Despite being so thin, we found it easy to find all of the iPad 2′s buttons and controls by feel. The lock switch is now configurable, too, so you can decide if you want it to lock the orientation or mute the device.

Dual-Core Power: To test out the speed of the iPad 2 compared to the iPad, we fired up the Photos app and started flicking through dozens of photos. Thanks to the dual-core CPU in the iPad 2, it took little or no time for images to fully render as we zipped through the gallery, while the iPad took a second or two. We also saw less lag in games like Infinity Blade, thanks to up to 9X better graphics performance.

New Apps: We also played around with some new apps for the iPad 2. FaceTime calls are easy to set up and look great with the VGA camera at full screen. We just wish you could pull in contacts from other services and social networks. You can only call people on an iOS device or Mac. GarageBand for iPad looks like it’s going to be a hit. We love the way the app uses the accelerometer so it knows just how much force you’re using when playing the virtual piano. We also see kids have a field day with this app, especially the drum set.

We’d like to spend more time with iMovie, but it looks pretty intuitive for creating movies, complete with titles, transitions, and soundtracks baked into each theme.

Smart Cases: One of our favorite features of the iPad 2 is something you have to pay extra for. Smart Covers (starting at $39) easily detach from the iPad 2 using magnets, and attaching them is as simple as moving it next to the tablet. You don’t have to line anything up. While it took us a few seconds to get the hang of it, we appreciate the ability to fold up Smart Covers so you can prop up your iPad for typing or viewing content. We loved the refrigerator door effect; when you open the Smart Cover even slightly the iPad 2 turns on, but when you close the cover the device turns off. This is a really clever add-on.

Outlook: So what’s missing? The display resolution of the iPad 2 is the same as its predecessor, even though the panel still looks great. And you don’t get 4G data connectivity, which gives the 4G LTE-upgradeable Motorola Xoom an edge in that department. We also didn’t see anything today in terms of cloud integration with iTunes. Overall, though, the iPad 2 looks like a pretty sweet sequel.